The Short Answer

Getting Started With a 529 College Savings Plan

Karen Wallace, CFP®

If you're like many parents and grandparents, college savings is probably on your to-do list. Here are some tips on how to get started and keep saving in a 529 plan so you can count yourself among the successful resolution-makers. 

Why Save in a 529?
These accounts have become popular vehicles for college savings because they allow savers to sock away a significant amount of money, and they have money-saving tax advantages--including state tax breaks on contributions and tax-free compounding and withdrawals for qualified higher-education expenses. In addition, 529 plans reduce the financial-aid impact compared with money held in the student's name.